House Bill No. by Representative Jordan amends existing laws related to consumer loans in Louisiana, specifically addressing maximum loan finance charges, origination fees, and borrower assistance programs. The bill increases the maximum loan finance charge for consumer loans, allowing up to 36% per year for loans not exceeding $10,000, 30% for loans between $10,000 and $20,000, and 24% for amounts exceeding $20,000. Additionally, the origination fee that lenders can charge is raised from $50 to $75.

The bill also introduces new provisions for borrower assistance in the event of a major disaster declaration by FEMA. Licensed lenders are required to notify borrowers about any assistance programs within ten days of establishment and must suspend late charges and collection actions for 60 days following such a declaration. Furthermore, lenders are mandated to offer a credit education program at no cost to borrowers, covering essential financial literacy topics. The initial application and renewal fees for lenders are also increased, from $650 to $900 and from $500 to $750, respectively.

Statutes affected:
HB952 Original: 9:3519(A), 9:3530(A)(1), 9:1(A)